annual report · annual report 2018 2 index foreword executive summary mission, vision and values...

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annual report 2018

Annual Report2018

Noha HabbalBusiness Management Student at Arab Open UniversityLebanon

annual report 2018

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Index

Foreword

Executive Summary

Mission, vision and values

Highlights of 2018 programmes

Programmes Higher Education Services (Middle East)Improving Economic Opportunities (Jordan)Entrepreneurship and Business Development Activities (Middle East)Local Employment in Africa for Development (North Africa & Somalia)Irish Potato Value Chain Financing (Rwanda)Summary of programmes

OrganisationMonitor, Evaluation and Lessons LearntCommunicationBoD and SB and Report by SBCode of Conduct and Social ResponsibilityOutlook 2019Complaints ProcedureOrganisational ChartRisk Analysis

FinanceInvestment PolicyFraud prevention and correctionSPARK BoD RemunerationFinancial ResultsBudget 2019 Summary

Financial StatementT 2018Balance SheetStatement of Income and expendituresCashflow StatementSpecification and allocation of costs according to category�Accounting principles Explanatory notes Balance SheetExplanatory notes Statement of Income and Expenditure�Remuneration Executive board SPARKPercentages: per programme & donor and efficiency indicators�Signatories of Annual Report 2018Auditor report

List of Abbreviations

Contact

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annual report 2018

1 Foreword

In the Middle East, we have responded to the

increasing demands of young Syrian refugees

by providing thousands more higher (vocational)

scholarships. Our strong local partners supported

us to implement an array of employability-boosting

courses for students that are designed to increase

their job prospects in the region. Supporting our

nearly 10,000 (mostly Syrian) students in the

Middle East through graduation and into a job or

entrepreneurship, remains our main challenge and

priority.

With SPARK continuing to grow and increase its

impact, serious attention has been devoted to

improving internal functionality of the organisation. In

2018, SPARK started the process of decentralisation

from the Amsterdam HQ office into regional

offices and creating a hub structure with Regional

Hub Programme Directors based in Tunis (for

North Africa), Kigali (for sub-Saharan Africa)

and Gaziantep/Beirut (for the Middle East). The

restructuring will allow regional responsibility for all

programmes within the hubs, with support coming

from HQ offices. As such, dedicated resources have

been allocated and knowledgeable staff are being

recruited to ensure SPARK develops quickly enough

to meet its increasing responsibilities.

With many of our current programmes maturing,

SPARK is continuing to put its local partners first, in

the spirit of the ‘Grand Bargain’ initiative launched at

the World Humanitarian Summit in 2016. It remains

our goal to work with local organisations, businesses

and (semi) governmental partners to design and

implement impactful programmes. Our role will

increasingly take a more supportive form, helping to

strengthen their capacities to deliver.

It remains a privilege to support young people in

fragile regions in becoming future leaders.

Yannick du Pont & Michel Richter

Board of Directors

Dear readers,

The year 2018 saw a rapid increase in SPARK’s activities across our three main regions: Middle East, North Africa and East Africa. In particular, we scaled our efforts to support local small and medium enterprises (SMEs) by introducing sustainable programmes that support not only entrepreneurs but larger businesses as well.

This has been partly thanks to new, ground-breaking partnerships that were made in 2018, for example with the Islamic Development Bank and the Sheikh Abdullah Al Nouri Charity Society (Kuwait).

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2 Executive Summary

Due to the impact we have been able to generate, the

support we received has been increasing. SPARK is

able to tackle the root causes of poverty, inequality,

socio-economic exclusion and forced migration. A full

overview of our programmes and results are available

in the Summary of Programmes table (page 24).

Throughout 2018, SPARK continued to keep focused

on our two areas of expertise:

Higher (Vocational) EducationWe awarded 2,203 more Bachelors, vocational

and short course scholarships to Syrian refugees and

marginalised youth from host communities surrounding

Syria. As always, scholarships were awarded for

subjects tailored to the needs of the local business

community or the post-conflict reconstruction of Syria.

Besides regular full-time education, students received

remedial English courses, extra-curricula summer

courses, psychosocial support, as well as training and

coaching to become entrepreneurs and civic leaders.

Nearing SPARK’s 25th anniversary, we are proud to have contributed to jobs for youth and vulnerable groups, such as minorities, migrants, refugees and women, in some of the world’s most fragile and conflict affected regions. We are able to deliver results due to the strong partnerships we have built with local organisations and key business and government stakeholders.

SME Development and EntrepreneurshipWe supported youth to create jobs in their fragile

communities by supporting 2,148 new and existing

Micro Small and Medium Enterprises (MSMEs)

with startup and company growth training courses,

coaching and access to finance.

Highlights this yearTop of our agenda in 2018 has been bridging the

gap between higher education and graduates

entering local labour markets, particularly for the

almost 10,000 (refugee) scholarship students nearing

graduation in the Middle East. As such, SPARK has

become the largest provider of higher (vocational)

education scholarships in the Syrian crisis.

Despite being forced to temporarily suspend

operations within Syria due to hostilities, in 2018 we

were able to start providing short, vocational courses

to Syrians in south eastern Turkey, in fields such as

Agronomy.

In Jordan and Somaliland, our internship

programmes have seen major successes with 386

more youth placed in work experience opportunities,

and with 79 receiving job offers as a result.

Agribusiness cooperatives have been boosted in

Rwanda, encouraging more than 25,508 Irish potato

farmers to join forces and work together. To support

the creation of so many new cooperatives across

large rural areas, a tailor-made mobile platform was

launched by SPARK. Over 7,000 farmers now have

access weather information, group chat functions and

bankable data allowing them to obtain loans more

easily.

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Clementine, a casava farmer, Ruhango District, Rwanda

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MissionSPARK develops higher education and entrepreneurship so that young ambitious people are empowered to lead their post-conflict societies into prosperity. We do so by building the capacity of local economic and educational organisations and institutions. In order to achieve these objectives, SPARK follows this strategy:

1. To reduce poverty by supporting local institutional initiatives to promoteemployment with a direct impact on primary necessities of life;

2. To reinforce institutional structures by developing the managerial capacity ofeconomic and educational institutions that are active in direct poverty reduction;

3. To promote a more effective participation of local economic and educationalinstitutions in policy-making processes at a local level, a national level and aninternational level.

VisionSPARK aims to become a leader within the niche of higher (vocational) education, entrepreneurship and MSME development in fragile and conflict affected states (FCAS). In the coming years, SPARK will expand its services in the Middle East, to reach more vulnerable youth from host nations and refugees. SPARK aims to reduce the number of countries it is currently active in in order to focus on delivering high quality programmes. SPARK actively solves problems and remains flexible in order to achieve the best results.

ValuesTrust in us to be reliable, fair and have integrity.Can Do attitude is how we achieve our best results.Care for what we do and who we work with.Courageous in who we are, what we do and who we support. Ignite innovative responses to the ever changing needs of the countries we work in.

3 Mission, vision and values

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5 ProgrammesIn 2018, SPARK operated 29 programmes across multiple regions (see summary of programmes table on page 24). Highlighted within this section of the report are the major programmes of 2018.

4 Highlights of 2018

2018 2017 2016

Jobs Created 3,274 1,594 1,208

Beneficiaries Trained 16,124 4,572 6,358

Scholarships Awarded 2,203 2,014 2,974

MSMEs Established 915 229 289

MSMEs Supported 1,233 478 369

Key performance indicators

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With hundreds of thousands of Syrian and local youth

applying for a handful of overseas scholarships, new

approaches are needed to scale up access to higher

education in the Middle East.

The HES programme tackles the acute need to improve

Syrian youth’s access to higher education in Syria

(SIG), Iraq (KR-I), Turkey, Palestinian Territories and

Lebanon by partnering with government counterparts,

higher education institutions, education partners and

other relevant partners. Through a holistic approach,

HES builds an educated workforce of civic–minded

and professionally youth who will become the future

leaders of their communities, businesses and countries.

In 2018, SPARK continued awarding scholarships with

an overall target of 8,775 scholarships in all regions.

A total of 6,785 scholarships had been provided,

achieving 77% of the overall target. Due to the

deteriorating security situation in Syria, programme

activities were suspended in the summer of 2018, with

new operations due to start in 2019.

Additionally, attention shifted to new SPARK

activities supporting employability and job creation

(entrepreneurship) pathways for beneficiaries.

Furthermore, student support services, including

language, remedial and summer courses, PSS support,

civic leadership and economic empowerment training,

were up-scaled with a total of 2,524 students provided

with extra-curricular trainings. SPARK tracks the study

progress of all its scholarship students via an integrated

online student information system (SIS).

According to mid-term evaluations, closer coordination

between activities and academic schedules will prevent

the overlap with classes or exams and will help the

students maintain a work/life balance. An in-country

complaint procedure has also been developed for

a more efficient response to student complaints and

questions. To tackle drop-outs, SPARK will focus on

continuous follow up with students on their study

progress, needs-based student services and retention

activities as well as assessing student satisfaction.

Higher Education Services (HES)

SPARK Programmes

Cleaner beaches for host communities

Hassan Hassan is a daring young man who wants to better his community. Born in Aleppo, he

was forced to flee Syria in 2015, leaving his family and education behind in search of safety.

Hassan, now living in Lebanon, studying Accounting with a scholarship from SPARK and Al

Fakhoora. Alongside his scholarship, he has enrolled in the extracurricular courses on offer,

giving the opportunity to better his community. Hassan went on to become one of the founding

members of the Association of University Students in Lebanon, giving seminars to other students

and being active in their communities - most recently organising a beach clean up in South

Lebanon! The future looks bright for Hassan: “My opportunity came when I got introduced to

SPARK, because I am a man with no limits to my ambition”.

Hassan Hassan, Syrian Accounting student, Beirut, Lebanon

SPARK Stories

UNHCR reported that over 400,000 people in the age group 18-24 have fled Syria, with less than 5% having access to higher education with financial and regulatory barriers preventing from accessing it in host countries. This has a serious impact on their ability to participate in the reconstruction of their country.

LEBANON

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SPARK’s Improving Employment Opportunities (IEO)

Programme initiated in 2016 and funded by the

NLMFA, creates jobs and improves employability for

Syrian and Jordanian youth in Jordan by supporting

entrepreneurs, existing Micro, Small & Medium

Enterprises, reinforcing educational institutions,

and implementing a reconstruction skills training

programme.

By increasing the number of qualified Conflict

Sensitive Business Skills trainers, SPARK was able to

train 1,670 participants in reconstruction skills. The

entrepreneurship training programme lead to over

1,005 participants trained, with the development

of 540 business plans. The internship programme

focused on enhancing the employability skills of

Syrian and Jordanian youth leading to over 500

interns completing their internship period. Around

28% of interns acquired jobs within 6 months of

completing their internships. 115 students across 3

different universities completed entrepreneurship boot

camps.

By making substantial changes in programming,

SPARK better leveraged resources and modified

important components in the programmes. This will

lead to better results and help reach our targets

effectively and efficiently. It is also important to

combine training and coaching, as beneficiaries,

especially entrepreneurs and MSME owners, will

greatly benefit from both. Another important lesson

is to improve the selection process of implementation

partners and management of each partner’s selected

activities.

Improving Economic Opportunities (IEO)

SPARK Programmes

From intern to employee

Ahmad Almasri, a Syrian Palestinian, living in Jordan has experienced being seen as a refugee

twice. Being forced to start all over again at 26, Ahmad found out about the SPARK internship

programme by attending a local event in his new community. He chose to intern at the ITTIHAD

Insulating Glass Company, starting out in the warehouse assisting in the shipment of glass.

Despite being younger than many, he quickly picked up managing skills. This did not go

unnoticed as his supervisors offered him a full time position after completing his internship within

the management team.

Ahmad Almasri (Palestinian Syrian), IEO intern at glass factory, Amman

SPARK Stories

The ongoing conflict in Syria continues to pose a complex humanitarian challenge in the Middle East. As a neighbouring country, Jordan has absorbed an estimated 1.4 million Syrian refugees in the past years. The vast majority of unregistered Syrian refugees work in the informal sector, where jobs tend to be labour intensive and low skilled. A research report conducted by the ILO and UNHCR in May 2015 highlighted that Syrian refugees are excluded from high-skilled and semi-skilled employment in Jordan, which also has an impact on joint venture start-ups between Jordanian and Syrian entrepreneurs.

JORDAN

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In 2018, EBDA organised 33 workshops for potential

entrepreneurs and delivered training to 111 existing

MSMEs. In Turkey, Jordan and Lebanon, more than

3,000 trainees were reached through a successful

promotion campaign, which resulted in 4,530

applications to the project. As a result, a high number

of participants attended both, which goes to show that

the programme resonates with the needs of the youth

in these conflict affected regions.

The year of implementation taught the EBDA teams

that a strong context analysis prior to activities is

necessary to reach target audiences. The analysis

should keep in mind cultural and societal challenges,

and additional factors to successfully reach the target

groups. Strengthening the agency and capacity of

local partners with better contextual and cultural

understanding is necessary to enable the programme

to be better tailored to local needs.

Entrepreneurship and Business Development Activities (EBDA)

SPARK Programmes

Employing rural women

Roudaina Bou Shahine, 25 from Lebanon, received training in 2018 and later won €10,000 in

startup capital during the EBDA programme’s business plan competition. Her company, Reef,

provides catering services to local and international NGOs based in Beirut, with food cooked

by women from rural areas and other underprivileged communities. “When I started the EBDA

programme, it was a turning point for Reef”, she said. “The coaching was priceless and the

fund is what made the real difference”. She will use her new business skills and the finances to

formally register her business, refurbishing the women’s kitchens to meet safety and hygiene

standards, and purchase delivery vehicles. “Never underestimate the power of a single idea. It

can change the lives of hundreds of people,” she said.

LEBANON

Roudaina Bou Shahine, 25, Lebanese entrepreneur, Reef catering, Beirut, Lebanon

SPARK Stories

The EBDA programme (EBDA meaning ‘Begin’ in Arabic) provides Syrian refugees and vulnerable youth from the hosting countries of Turkey, Jordan and Lebanon, with opportunities to start new businesses and grow existing ones. EBDA is based on promoting entrepreneurial competences, developing businesses relevant for reconstruction of their country, as well as the economic development of the host country.

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SPARK, in collaboration with its local partners, have

created 2367 job opportunities for unemployed

youth in 2018. In all three implementing countries

LEAD partners continued to provide technical

and soft skill training, in addition to coaching and

mentoring programmes for 1175 young business

owners and aspiring entrepreneurs.

In Tunisia, SPARK and local partner, IACE,

established the Regional Entrepreneurship

Observatory, a networking and problem solving

gathering that brings together 20 local actors. During

2018, a total number of 45 cases were solved.

Additionally, the collaboration with the Centre

d’affaires of Kairouan City resulted in the establishing

of a marketing and communication strategy will have

a greater impact.

In Somalia, SPARK worked with Shaqodoon to

provide farmers an innovative technology that will

enhance the farmers’ position in the market and

increase their revenue: the first SMS-based market

information system in Somalia. In Libya, local

partner Jusoor established the first ever women-

only incubator centre. The centre provides space for

women entrepreneurs to develop their business ideas,

receive mentoring from mentors in the private sector,

and support SMEs showcasing their products.

One of the challenges faced in Libya was ensuring

activities continuity in a conflict zone and supporting

as many beneficiaries as planned.

Local Employment in Africa for Development (LEAD)

SPARK Programmes

Reaching newmarkets

MedicaSud Industry has been manufacturing medical devices in Tunisia since 2014, producing

surgical masks, medical clothing and sterile equipment used in hospitals and clinics. The company

employs 75 full time staff and with locally produced and high quality products, as well as

competitive prices and reliable customer services, MedicaSud reached 60% of the market share.

However, being limited to the Tunisian market was infringing on the company’s sustainable

growth. In 2018, SPARK assisted the company to produce an action plan for updating its multiple

quality management system in compliance with ISO 13485:2016 requirements. This process has

allowed MedicaSud to participate to MEA tenders and enter European market, resulting in the

creation of 18 permanent jobs.

MedicaSud Industry medical equipment, Tunisia

SPARK Stories

The LEAD programme, launched in 2016 in Tunisia, Libya and Somalia, creates sustainable jobs for youth by supporting new and existing SMEs and startups with coaching, training and access to finance. Moreover, LEAD instills an entrepreneurial mindset in the targeted communities that will undoubtedly have lasting results.

TUNISIA

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The project mobilises Irish Potato farmers to join

cooperatives and work together, resulting in increased

memberships from 15,000 to 25,508 in 2018,

collected via Salesforce. Through proximity coaching

and agribusiness advisory services provided by

SPARK agribusiness coaches, 64 cooperatives (6,392

individuals) acquired new skills in management,

leadership, access to finance and financial

management, enabling leaders of cooperatives and

farmers to improve their daily management and

increase memberships.

In 2018, IPoVaF launched a mobile platform that can

be accessed using simple mobile phones. Farmers are

provided with easy access to weather information,

group chat functions to ease communication within the

cooperatives, and bankable data allowing for easier

loan processes. As a result, 7,230 farmers registered

on the platform and 5,871 farmers have bankable

data in the platform for financial institution loan

scoring.

Coaching allowed for consistent capacity building

and onsite training, which proved to be the most

effective and efficient method to reach a large number

of farmers within shorter time-frames. Additionally,

improving the communication with donors led to a

greater exchange of ideas and an adjustment of

the project with field reality. Quarterly feedback

also provides a platform to identify the gaps in

implementation and field experiences to improve the

overall quality of the project.

Irish Potato Value Chain Financing (IPoVaF)

SPARK Programmes

Mobile farming solutions

Jean Baptiste Gahamanyi is the Secretary of the Kotimurwe Irish Potato farming cooperative

in Burera District. He has greatly benefited from learning and using the mobile platform as it

allows him to easily communicate with the other farmer members of the cooperative. “I can send

meeting invitations to the cooperative members for free, without using up the cooperative’s hard-

earned money. We can chat among members and share information, without worrying about

costs”. Thanks to the mobile platform he can now also access important weather information

which has increased his Irish potato crops!

RWANDA

Rwandan Irish Potato farmers learn how to use SPARK’s IPoVaF mobile platform for simple phones

SPARK Stories

IPoVaF, a two-year project funded by Access to Finance Rwanda (AFR), increases access to financial services to enhance productivity, income and job opportunities for Irish Potato smallholder farmers in Rwanda. The project supports the ambitious development targets set out by the government of Rwanda in its 2nd Economic Development and Poverty Reduction strategies (EDPRS II).

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Summary of SPARK programmes

Programme Donor Duration Objectives Locations KPIs/Programme Values

Strengthening Human Security Through Rapid Rural Job Creation in Fragile States (ABC)

NLMFA 2013-2018 2013-2018 To strengthen human security through rapid rural job creation infragile states. Yemen

# of beneficiaries trained 60

# of partners staff trained 30

# of MSMEs supported 124

Burundi Agribusiness Incubation Network ABIN NLMFA 2014-2018To establish a network of agribusiness incubation centres and help marginalised groups in rural areas to start agri-businesses in order to improve their livelihoods in Burundi.

Burundi


# of jobs created 573

# of MSMEs created 574


Youth Entrepreneurship and Employment Project (YEEP) AfDB 2017-2020

The aim of the project is to promote youth entrepreneurship through improving their business skills and to improve youth employability by empowering them with relevant skills required by the job market.

Liberia

# of entrepreneurship centers established 1

# of carriculum developed and introduced 1


Access to education for Syrian refugees and IDPs to prepare for post-conflict reconstruction of Syria and integration in host communities 28273 and 4547

NLMFA 2015-2019To tackle the acute and overwhelming need to improve Syrian youth access to higher education in Syria (SIG), Iraq (KRG), Jordan, Turkey and Lebanon.

Turkey, Lebanon, Jordan, KR-I

# of scholarships for higher education awarded 106

# of beneficiaries graduated from higher education 113


TA Consulting Services for the Establishment and Management of a Somali Small and Medium Enterprise Facility (SMEF)

The World Bank 2016-2018

To support Small and Medium Enterprise (SME) development in Somalia, project covers launching, operationalizing and managing Somali SME Facility, a facility to provide technical assistance, training and coaching to entrepreneurs, investors, Business Development Services (BDS) and Technical and Vocational Education and Training’s (TVET) providers.

Somalia not applicable - profit sharing projectnot applicable - profit sharingproject

Boosting Your Beliefs NLMFA 2017-2018

To counter (online) radicalisation of young men and women and contribute to an environment which builds young people’s resilience, paves the way for a future workforce and subsequently diminishes the risk of future radicalisation and violent extremism.

Iraq (KRG) # of beneficiaries trained 20

Implementation of Start-Up Business Incubators in Palestine Belgian Development Agency 2016-2018

To facilitate the creation of MSMEs through incubation and to enhance their skills in becoming more competitive and financially sustainable.

Palestine “not applicable (profit share project) not applicable

Capacity Development for Agricultural Innovation Systems EU 2017-2018

Strengthening the capacity of agricultural systems for innovating, at community and national level – a move away from linear, top-down technology transfer Building capacity of National Innovation Facilitators (NIFs) to support innovation systems in the future Influencing national policy to promote systems for agricultural innovation Specifically, development of ‘functional capacities’ to complement existing technical capacities or technical capacities being developed in partnership with other organisations.

Rwanda


# of learning events organised by SPARK that promote agricultural innovation/collaborations in Rwanda

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Supporting Teachers Identify Early Stage Radicalisation NLMFA 2017-2018To provide teachers with the skills needed to identify potential early stage radicalisation in youth and young adults, so that preventative or de-radicalisation measures can be taken.

Iraq (KRG) # of beneficiaries trained 1107

Refugee Entrepreneurship Programme (Postcode Loterij) Postcode Loterij 2018-2019“Basic entrepreneurship skills trainingTraining on business idea development and modelling Training on business planningBusiness Plan Competition (BPC) MSME support, coaching, and mentorship”

Turkey, Jordan, Lebanon


# of trainings organised 33


Gaziantep CoC Capacity Building EBRD 2017-2019

“To strengthen the local SME support infrastructure by supporting the implementation of the EBRD Syrian Refugee Response programme with Capacity Building activities in support of the GCC:”

Turkey

# of assessment reports developed 1

# of strategies to serve refugee-driven entreprises developed 1

# of focus groups discussions held 4

Network for Migrant Entrepreneurs to Scale Up and Grow EMEN UP EU 2017-2020

To contribute to the effective engagement of diverse European actors in improvement and promotion of existing schemes and lobbying for more opportunities for creation and growth of migrant enterprises.

Netherlands, Germany, Italy, Spain, United Kingdom

# of member organisations represented in the Network 21

# of countries represented in the Network 15

# of stakeholders participated in workshops 116

Access to education for Syrian refugees and IDPs to prepare for post-conflict reconstruction of Syria and integration in host communities 28273 and 4547

EU Madad 2016-2019

The HES project aims to tackle the acute and overwhelming need to improve Syrian youth access to higher education by providing overall 10,000 Syrians in 4 years with the skills needed to reconstruct their country in the long-term, and give back to their host communities in the short-term, whilst also building the capacity of the higher education sector in the region. This is done in a variety of ways.

Turkey, Lebanon, KR-I, Syria




Higher Education for Syrians under Temporary Protection and disadvantaged host communities in Turkey EU Madad 2018 Create access to Higher Education at Bachelor and TVET level for

disadvantaged youth. Turkey




EU - Liberia Agriculture Programme EU 2017-2022 To improve the productivity and sustainability of nutrition sensitive agriculture at the level of smallholder farmers Liberia


# of participants in entrepreneurship events 88

Dynamic Futures Programme- Syrian Refugees and Palestinian Expansion Al Fakhoora 2016-2021

Access to education (bachelors, TVET, technical diplomas, short courses) for Syrian refugees and IDP's to prepare for post-conflict reconstruction of Syria and integration in host communities

Turkey, Lebanon, KR-I, Jordan, Palestine, Syria






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International Business College Mitrovica IBCM EU 2008-2018

To create a sustainable truly inclusive higher vocational institution, producing young professional civil servants and business leaders in Mitrovica region, used to work in multi-ethnic teams; To improve employability through study programs with a heavy focus on practice and skills as well as facilitate graduates to start their own enterprises; To assist Kosovo on its path to EU integration by providing modern curricula in doing Business with the EU and training (future and existing) civil servants in EU Integration.

Kosovo not applicable - transition period not applicable

Improve Employment Opportunities in Jordan NLMFA 2017-2018To reduce migratory and radicalisation tendencies amongst Syrian youth, and prepare for the reconstruction of Syria by creating employment and entrepreneurship opportunities.

Jordan


# of beneficiaries who received formal employment after their internship 76



Increased access to financial services to enhance productivity, income and job opportunities for Irish Potato smallholder farmers in Rwanda

AFR 2018-2020Increased access to financial services to enhance productivity, income and job opportunities for Irish Potato smallholder farmers in Rwanda.

Rwanda

# of cooperatives supported 66


# of Irish Potato Small Holder Farmers who registered to the Mobile Financial and Agri-Informational services Platform

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# of jobs created 187

Improving Access to Education for Syrian Refugee(SuTP) and IDPs in Syria Region through Providing Vocational Education for Employment in order to Empower a workforce for the Reconstruction of Syria

Islamic Develoment Bank (Saudi Arabia), Sheik Abdullah Al Nouri Charity Society (Kuwait)

Islamic Develoment Bank (Saudi Arabia), Sheik Abdullah Al Nouri Charity Society (Kuwait)

1- Support Access to vocational education and training for IDPsinside Syria;2- Provide access to vocational education and training for Syrianrefugees in Turkey, Lebanon, Jordan, and Iraq (KRG);3- Empower Syrian Students to find or create jobs throughentrepreneurship and business skilling for employment.

Turkey, Lebanon, KR-I, Jordan, Syria



Jordan’s Small and Medium Enterprise (SME) Growth Programme EIB 2015-2018

To generate significant impacts for the Jordanian economy, build capacity within JEDCO (Jordan Enterprise Development Corporation) and provide evidence for MSMEs, investors and government that supporting high-growth potential MSMEs is a powerful tool for growth.

Jordan not applicable - profit sharing projectnot applicable - profit sharingproject

Kosovo Education for Employment Network (KEEN) EU 2016-2018

To contribute to the improvement of employability of vulnerable groups in Kosovo and their inclusiveness in both the education sector and the labor market, by promoting partnership and dialogue between civil society, government and the business sector. It also aims to increase alignment of education and training programs with labor market needs by enhancing participation of civil society organizations in decision making, policy development and policy monitoring at central and local levels, and by facilitating dialogue between education & training institutions and businesses.

Kosovo

# of conferences organised 1

# of workshops organised 2

# of municipalies adopted the project's lobbying initiative 4



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Social Enterprise Arthouse Cinema EU 2018-2019To increase CSO sector capacity in addressing human rights issues, promoting social and economic development, and restoring cultural heritage in Liberia.

Liberia

# of jobs created 5

# of people attending events organised 6658

# of (community) awareness screenings organised 2

The improving the socio-economic position of youth in Libya, Somalia and Tunisia, Local Employment in Africa for Development (LEAD)

NLMFA 2016-2018 To reduce irregular economic migration and radicalisation of young people to contribute to the stability of Africa.

Libya # of jobs created 485

Tunisia # of beneficiaries trained 1602

Somalia # of MSMEs supported 460

Pathways to Business in my New Country Business Council for Peace (Bpeace) 2017-2018

Increase the business acumen, leadership and management skills among Syrian women refugees through education and mentorship. Thereby ensuring these women’s participation, and critical role, in building peace and security--in their home, host community and home country.

Lebanon # of beneficiaries trained 20

Start-up Bootcamp and Incubation for Young Entrepreneurs Citibank Europe 2018 -2019To improve employment opportunities for business minded vulnerable Palestinian students in the age range 18 to 35 who are current SPARK scholarships beneficiaries

Palestine# of beneficiaries trained 40

# of beneficiaries participated in business plan competitions 36

Promoting Self-Reliance of Refugees Through Global Employment TBB 2016-2018 To open a safe and legal pathway for refugees to be self-sufficient

through international private sector employment. Lebanon, Jordan# of candidates who received a job offer 12


Human Safety Net for Refugee Start Up Generali 2017-2019 Equip refugee entrepreneurs with skills & tools to set up businesses & create jobs

France, Germany, Turkey




Youth and Women Agribusiness Entrepreneurship Programme NLMFA 2018-2019Increase economic opportunities for youth and women in the fields of agriculture. Improve food security for communities in selected project areas.

South Sudan






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Winners of the Startup Roadshow during SPARK’s annual IGNITE conference, Amsterdam

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6 OrganisationAt SPARK, we monitor all our programmes to facilitate solid programme management and donor compliance. We have an ISO 9001 Quality Management System to ensure appropriate internal processes and to provide high quality services to our beneficiaries leading to the desired impact for them and their communities.

SPARK uses several solutions to monitor its

interventions, including an in-house built tools to

monitoring and managing the student applications and

scholarships provided. Additionally, SPARK started to

use Salesforce to closely monitor the support it offers to

entrepreneurs and the development of their businesses.

These and other solutions are implemented within the

programme monitoring processes by the teams and

through the technical support of the organisation’s

Monitoring and Evaluation department. The outputs

provide programme staff with data for steering their

programmes towards their targets.

These solutions are implemented within the

programme monitoring processes by the teams and

through the technical support of the organisation’s

Monitoring and Evaluation department. The outputs

provide programme staff with data for steering

their programmes towards their targets. The data

additionally enables senior management to steer the

organisation as a whole per the multi-annual strategic

goals.

Evaluation and LearningIn 2018, SPARK externally evaluated two of its largest

programmes, namely Higher Education Services (HES)

and Improving Employment Opportunities (IEO).

Findings and learning from these evaluations are

particularly important as they relate to the intervention

themes and regions that are of strategic importance for

the organisation.

The main lessons learned from these evaluations are

that beneficiary selection processes should have

a balance in terms of qualifications, vulnerability

status and motivation/commitment selection criteria.

Additionally, the first phase of development of an

alumni platform provides opportunities for SPARK

to clearly identify its impact and communicate it, as

well as, enable its past beneficiaries to connect with

peers and receive support after the programmes are

finished.

Quality AssuranceSPARK implements an ISO 9001:2015 quality

management system for promoting constant

improvement within the organisation and its

interventions. In 2018, quality audits identified

that SPARK’s services to its beneficiaries (e.g.

trainings, scholarships and student services, business

plan competitions, summer courses, etc.) were

implemented optimally, according to the relevant

quality standards.

In line with this, in 2018 SPARK met its target

beneficiary satisfaction: in scale from 1 to 5, with

5 being the highest satisfaction score it scored 4.1,

exceeding the organisational target of 3.5. This

conclusion was made possible through beneficiary

satisfaction surveys, which were conducted within

SPARK programmes after the end of the cycle of

activities.

In 2018 SPARK also developed a scholarships

manual, which has a clear focus on the quality

of the provided scholarships. This manual is

expected to promote organisational learning and

improvement in SPARK’s most strategic intervention.

CommunicationIn 2018, SPARK’s communication team

welcomed new staff members, resulting in

further professionalised content and increased

outputs. Based on the Multi Annual Strategic Plan

(MASP), the growing team developed a new

communications strategy, positioning SPARK as

an expert organisation in higher education and

entrepreneurship development in fragile states.

Armed with a new strategy, the team was able to

channel new messaging throughout promotional

materials, new photography from the Middle East

and a new series of podcast episodes, in which

young students and entrepreneurs, including Syrian

refugees, tell their personal stories of survival, failure

and success. These podcasts were used across

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annual report 2018

social media - receiving high listener ratings - as

well as during an audio visual exhibition at the

IGNITE conference.

In March, the Bridging the Gap conference

took place at the American University of Beirut

(AUB), in partnership with the EU Madad Trust

Fund and the Issam Fares Institute (AUB), which

heard from European Commissioner for European

Neighbourhood Policy and Enlargement

Negotiations, Johannes Hahn, Lebanese Minister

for Education, H.E. Marwan Hamadeh and Jan

Waltmans, Ambassador of the Netherlands for

Lebanon.

In November, the 6th edition of the annual IGNITE

conference took place at the Muziekgebouw in

Amsterdam, opened by the Mayor of Amsterdam,

Femke Halsema and Dutch Minister of Foreign

Trade and Development Cooperation, Sigrid Kaag.

The conference this year welcomed back previous

partners: the International Finance Corporation

(IFC), Al Fakhoora, and the City of Amsterdam,

as well as new partners: IKEA Foundation and the

Islamic Development Bank (IsDB).

SPARK’s social media performance has improved

significantly compared to 2017 (see table) due to

more active online campaigns, which engaged

more followers on Facebook, Twitter and Instagram.

An average of 300 new followers are engaged

on Facebook each month, and roughly doubling

that during the IGNITE period in October and

November.

Over 350 international attendees from the public

and private sector were attracted to the IGNITE

conference in 2018 by high profile keynote

speakers, such as Musa Sillah, Senior Director

General of the Islamic Development Bank, Dutch

Minister of Foreign Trade and Development

Cooperation, Sigrid Kaag, and Oxford University

professor, Alexander Betts. All the speakers and

workshops throughout the day offered relevant

contributions on entrepreneurship development

in fragile states, the necessary involvement of the

private sector in solving the global refugee crisis,

and bridging the gap between higher (vocational)

education and the labour market.

Many attendees applauded the change of venue

(from the Beurs van Berlage in previous years),

enthusiastic about the location at the IJ river, the

building’s more modern feel and the impressive

auditorium. With the IGNITE conference SPARK

continues to position itself as an expert and thought-

leader in economic development for youth in some

of the world’s most conflict affected regions.

Social media performance compared to 2017

2018 2017

Facebook 12,153 9,490

Twitter 2,500 2,269

Instagram 1,238 686

Website page views 319,648 92,614

IGNITE page views 5,567 6,614

IGNITE newsletter views 3,834 2,433

Supervisory Board:• Edo Offerhaus, Chairman from 2015, Executive

Director at NLinBusiness

• Hans Huygens, Secretary from 2015, Managing

partner at Tellinq

• Tamar Schrofer, General Board member from

2017, Programme coordinator at Develop2Build,

Netherlands Enterprise Agency (RVO)

• Frank Knaapen, General Board member from

2017, Project leader at Dutch Ministry of Foreign

Affairs

Supervisory Board (SB) members hold their position

for a maximum of four years, with the possibility of

reappointment for one more period of a maximum

of four years. In 2019, Frank Knaapen left the SB

and will be replaced. SB members did not receive

any compensation in 2018 (other than out-of-pocket

expenses on behalf of SPARK). Further details on the

remuneration of the SB and the BoD can be found in

the Financial Report and the remuneration policy is

available online.

Report by the Supervisory Board:

SPARK’s SB supports the organisation in the pursuit

of its mission and its continuous striving for quality,

transparency and innovation in all its activities. The

SB’s main responsibilities are to supervise the BoD

and to ensure that SPARK’s activities are in line with

its mission statement. In 2018, the 11th year of its

existence, the SB, and the BoD held four formal

Supervisory Boards meetings.

The SB adheres to the Code Wijffels, the SPARK

Statutes and the regulations of the SB. In line with

CBF regulations, the SB established a Supervisory

Board Accountability Statement (available at:

www.sparkonline.org/about-us/organisation). The

accountability statement specifies how:

• The SB executes its supervision of the BoD’s work;

• The SB monitors the organisation’s spending of

funding in relation to the impact attained by its

work; monitoring criteria are cost-efficiency and

effectiveness of activities;

• The SB monitors whether the organisation

communicates with and provides information

to its stakeholders in a transparent manner. This

Organisation

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annual report 2018

includes control of SPARK’s implementation

of recommendations and its complaints

management.

• In 2010, SPARK introduced an evaluation

mechanism for the SB. The SB self-evaluates its

own decisiveness, its monitoring performance

and the clarity and transparency of its relationship

with the BoD.

The members of the BoD are appointed by the SB. The

BoD’s members in 2018 were:

• Yannick du Pont (Director)

• Michel Richter (Co-Director)

Yannick du Pont holds three other positions without

receiving remuneration for these. He is a board

member of the Foundation Max van der Stoel

and the Littlebitz Foundation and a member of the

advisory board of the Centre for Theory of Change in

New York. Michel Richter is (unpaid) director of the

Stichting voor Bewaring van IGNITE Fund.

The SB is charged with the performance assessment of

the members of the BoD. The assessments review the

BoD’s performance on organisational targets as well

as personal ambitions and management style. The SB

monitors an efficient and effective execution of the

multi-year plan and, based on that, the annual plan.

The main targets of the annual plan are approved

by the SB, while the other activities fall under the

supervision of the Board of Directors.

In 2018, the SB approved, decided on and/or

discussed:

• Annual Account and Report 2017

• SPARK’s Multi-annual Strategic Plan 2017-2022

(Plan 2022)

• Financial outlook and budget 2018

• Financial outlook and budget 2019

• The recruitment of additional board members in

2018

Besides the formal SB meetings, several informal

meetings were held to discuss operational and

strategic issues and the progress of projects.

Yours faithfully,

SPARK Supervisory Board Members,

Amsterdam, July 2019

Code of Conduct and Social ResponsibilityWhen working in post-conflict and fragile

environments the adaptation to the local context is

of the utmost importance for SPARK to ensure that

its programmes and financial contributions do not

cause any unintended harm. All our programmes,

especially those targeting refugees, women, youth

and marginalised groups, contribute to increasing

equality and inclusion in the societies.

Maintaining high standards of ethical conduct require

the active commitment of all related parties. All of

SPARK staff sign a Code of Conduct (CoC) to set the

standard for behavior in SPARK. It includes clauses

on, for example, the prohibition of harassment,

discrimination and corruption, as well as awareness of

environmental protection. Additionally, it safeguards

the autonomy of local partners (e.g. trainers, experts

and local development organisations) and allocates

prime decision-making power to them, to avoid the

dominance of SPARK in its projects. If allegations

related to violations of the Code of Conduct are

received, an investigation follow.

Looking ahead to 2019SPARK will further grow in 2019 as it increases

the number of youth pursuing studies, finding jobs

or starting a company improving the economic

opportunities of over 48,012 beneficiaries in

the fragile states where we work. Our flagship

scholarship programme will help 10,000 (mostly)

Syrian refugees enter university, meaning that SPARK

will remain the largest higher education scholarship

provider for Syrian refugees in the Middle East. The

growing entrepreneurship and MSME development

programmes will support 548 businesses and start-

ups resulting in 2710 jobs.

SPARK will continue to focus on MSME development

and higher education in the Middle East and North

Africa, increasingly intertwining the two expertise

areas. In 2018 we started entrepreneurship and

MSME activities for Syrian refugees alongside

the scholarship programme, contributing to (self-)

employment opportunities. This will prepare the

ground for the reconstruction of Syria. Job creation

and economic growth remains at the core of our work

in Jordan, Libya, Somalia and Tunisia, where sizeable

existing programmes will be scaled to help youth

create jobs providing alternatives for migration.

In East Africa, notably Rwanda, Burundi, Somalia

and South Sudan, growth is observed in the

entrepreneurship and agri-business development

activities targeting youth, women and vulnerable

groups.

SPARK needs to remain mindful of the risks that may

hamper its ability to reach the targets. There is a

decrease in risks like span of control and complexity,

as the number of programme countries will decrease

in 2019 to 11. New programmes are built on existing

operations, within the same areas of operation.

However, other risks are increasing, such as rapid

financial growth rate increasing fraud risk and staff

safety. The average staff number for 2017 was 81 and

the average staff number for 2018 was 98.

Programme development was highly successful in

2017/2018 and a turnover of €25 million, one

of the ambitions of Plan 22, is within reach. This

has triggered internal reforms strengthening the

organisation. The investments include: new function

Organisation

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annual report 2018

and salary scheme, expansion of the board of

directors with a finance and operations director; a

new ERP system; development of a programmatic

learning agenda based on lessons learned in 2018;

strengthening the regional hubs (Gaziantep, Kigali,

Tunis) to absorb growth of our regional programmes

and streamline management. These will contribute to

the efficiency of the organisation, reduce complexity

and provide a foundation to increase the quality and

size of programmes.

We are expecting new partnerships with the private

sector, philanthropists and partners in the Gulf.

Through the co-creation of new activities we will

increase the number of beneficiaries bringing new

inspiring ideas.

Complaints ProcedureSPARK acknowledges the importance of complaints

and the insights they provide for improving service

and quality of our work. A proper and swift dealing

of complaints is important to maintain a reliable and

trustworthy position with our stakeholders. On these

grounds, SPARK actively provides beneficiaries with

information on how to submit a complaint.

In 2018 SPARK received 25 complaints. All were from

beneficiaries of or applicants to the HES programme.

These complaints referred mainly to issues with

the continuation of the scholarship and studies, or

with insufficient information provided from SPARK

regarding the status of applications. In 2018 there

was a decrease in the amount of complaints received

compared to 2017, indicating a positive development

in terms of beneficiaries’ satisfaction.

Students at the Digital Storytelling Workshop, Turkey

Organisation

43

annual report 2018

42

Cor

e Te

am

3 H

ubs

Cou

ntry

Offi

ces

Organisational Chart (as of early 2019)

Supervisory Board

DirectorProgrammes, Learning & Expertise

DirectorOperation HR, ICT, M&E. Legal

DirectorFinance

DirectorAcquisition & External Comms

Regional Program DirectorME

M&EManager

Strategy DevelopManager

Regional Program DirectorNA

ITManager

Comms ManagerRegional Program DirectorSSA

HRManager

Acquis ManagerBusiness Controller

Project Officer

Project Officer(s)

Regional M&RCoordinat

Finance Officer

Country Manager Finance Officer

(Dep) Program Manager

M&E OfficersRegional Comm Officer

IT DevelopersRegional Finance Manager

HR Advisors Comms Officer Business Developers

Project Controllers

Office Manager/ Assistant

GL Accountant

GL Assistant

Data Officer

Finance Officer

Project Officer

EU Region ProjectsManager

Boar

d of

Dire

ctor

s

Explanatory notes

Depending on the programme and budget available, the hub team is complemented by programme

managers, Comms officer, HR officer, Acquisition officer/consulltant, M&E officer, Logistics officers, trainers,

coaches, etc.

Depending on budget, the field office is complemented by program managers, M&E officer, logistics officers,

trainers, coaches, etc. Control & support functions primarily provided by the hub.

Trainers, coaches, experts etc focus on expert and consultancy role without office infra. Control & support

functions primarily provided by the hub.

The position of Regional Program Director can be combined with the position of Program/Project/Country

Manager. The Country Manager position can be combined with the Programme/Project Manager position.

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annual report 2018

Most important risks 2018

General and Programmatic Risks

Probability ImpactImpact description

New development as compared to last year

Problem Mitigation Strategy

Loss of added value as development organisation

** *** Declined (financial) support for SPARK mission

As last year Private sector development and youth unemployment has received increasing attention, this could result in a decrease in SPARK's value added as other development organisations engage in this field

Learning, innovation and continuous development of distinctive approach in fragile and conflict affected environments specifically, i.e. focus on this niche

Limited span of control due to broad geographical and programmatic scope in very challenging environments

* ** Lack of results Probability decreased as SPARK stopped working in 3 countries and a number of smaller projects have ended in 2018-19.

A large number of target countries and (relatively) small projects results in relatively high work load and no economy of scale advantages.

Reduce # of countries with field office as well as small scale projects.

Insufficient capacity of local partner organisations

*** ** Lack of sustainable results and financial irregularities and erratic reporting on the part of partner organisations

As last year Building local capacity takes time, while funding local partners have an interest in fast job creation to rapidly increase the level of stability

Two-tier approach of implementation activities and capacity building of local partners; rigid selection criteria.

Financial RisksHigh dependence on a limited number of donors

* *** Weaker organisational sustainability

As last year Traditionally, SPARK has received substantial funding from NLMFA and lately the EU. The NLMFA and EU funding constitutes the large part of our annual budget.

Continue diversification of donor portfolio.

Fraud within the organisation or among partners

** ** Lost funds, financial and reputational damage for SPARK

As last year Due to low level of rule of law and often high corruption levels, fraudulent activities can occur.

Rigid implementation of Partner and Sanctions Policy; payments only in instalments. Stronger and more finance staff based in the field close to operations.






FCAS specific RisksStart-up of new and unregistered operations

* * Delay in compliance with local regulations incurs a risk of fines. Absence of bank accounts results in higher transaction fees and added workload

As last year After a conflict, countries often experience chaotic circumstances making registration a lengthy process. Fortunately, SPARK’s activities are not of a political bent, so barriers can be overcome as registration is not controversial.

Open communication and high level of transparency towards host government. Open dialogue with donors. Pro-active lobby effort to speed up registration.

Staff security - health issues, safety, kidnapping

*** *** Financial and reputational damage for the organisation. Psychological and physical harm for employees.

As last year In FCAS there is an increase potential for employees being mugged, attacked or kidnapped.

Security policy and staff training; adequate response measures; insurance.

Organisational RisksHigh staff turnover

** ** Investment in staff capacity is lost and a substantial amount of time has to be spent on training and recruiting new staff.

As last year Limited budget is available to reward staff and remunerations are not always competitive. In addition, short contract durations are not exceeding the projects durations in order to limit financial risks.

Internal trainings and identification of opportunities for development; handover procedure. Create higher financial buffer to retain staff in moments of downturns. Scale existing programmes to allow for better remuneration and longer duration of contracts; Manage expectations regarding personal development and remuneration.

Rapid scaling leads to implementation challenges

*** ** Delays in target attainment & overworked staff

As last year Pressure on teams to deliver results on time. Challenging to recruit and on-board staff and attain results as per deadlines

Prioritising hiring and on-boarding of project implementation staff. Increase inception periods for new projects.

Risk Analysis

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annual report 2018






Limited fundraising/acquisition activity

** *** Weaker organisational sustainability and means to achieve mission

Fundraising and acquisition capacity strengthened

Improving acquisition capacity is important for development of SPARK’s project portfolio. Especially since SPARK turnover is increasing in 2018, the acquisition targets will rise as well to retain programme on equal of higher level.

Business Development Unit i expanded; recruitment of staff with new skills in donor base diversification and unsolicited proposal writing; training.

Field Office Sustainability

** * Non-earmarked budget (SPARK own equity) lost; field experience, expertise and capability lost

Probability slightly decreased as field offices have closed in Yemen and Kosovo.

The lack of funding due to ending programmes and possibly unsuccessful acquisition in certain countries may lead to staff de-motivation, and temporary or permanently closing of offices infrastructures and ending of staff contracts.

Ensure internal knowledge sharing across countries/ programmes and continued programme development. Ensure fundraising by country staff themselves with the support of Business Development Unit. Revert to on-distance operations in countries that close out field office structures.

* = low ** = medium *** = high

Syrian and Jordanian women work together at Teenah, a textile company in Irbid, Jordan

Risk Analysis

annual report 2018

4948

7 FinanceInvestment PolicyFinancial resources should be available in the short

term in order to carry out SPARK activities, as well as

to guarantee the continuity of the organisation. SPARK

does not invest in shares, bonds or real estate. Liquid

assets that are not required for activities in the short

term are transferred to a savings account with ING

Bank. These funds can be retrieved directly from the

aforementioned accounts.

Fraud prevention and correctionSPARK is committed to prevent and address fraud and

corruption within the organisation, its local partners

and contracted external parties.

To do so SPARK has appropriate financial and

administration procedures, a Complaints Handling

Process which includes a Whistle-blower Policy and

specific criteria for partner organisations in the partner

selection procedures.

In 2018, SPARK introduced a comprehensive Anti-

fraud and Corruption Policy. This combines the

control measures of other processes and procedures,

promotes efficiency and effectiveness in preventing

and addressing fraud and corruption within the

organisation. SPARK is committed to prevent and

address fraud and corruption within the organisation

and among its local partners and external contractors

activities.

SPARK BoD RemunerationSPARK’s Supervisory Board determines the Board

of Director’s remuneration based on the Directors

Remuneration Policy for Charity Organisations (see

also goededoelennederland.nl), which is in line with

the Wet Normering Topinkomens (WNT) norm. See

the Financial Annual Report for the calculation and

explanation of the remunerations over 2018.

Financial Results

Growth in 2018 and donor portfolioIn the year 2018, the income and expenditure level of

SPARK grew to €17 million which is a considerable

increase of 14% compared to the €15 million of 2017.

The increase of €2 million is caused by increase of

grants from the EU (€0.6 million), from NLP (€0.6

million), from Al Fakhoora (€0.6 million), a slight

increase from Dutch government (€0.1 million) and

a net increase in remaining donors (€0.1 million). As

a result, the donor portfolio 2018 of total €17 million

consisted of EU for one third, Dutch government for

one third and remaining donors for one third which is

a slightly better spread than in 2017.

Positive result in 2018The balance of income and expenditure over 2018

also ended with a positive amount of €258,241,

compared to €35,371 in 2017. The increase of

€222,870 from 2017 to 2018 is foremost the result

of more positive financial income caused by more

favourable currency conversion in 2018 compared to

2017 (€207,000) and subsequently a more positive

balance between income from organisational charges

and margin generated on day fees on the one hand

and organisational expenses on the other hand

(€16,000).

The actual level of €17 million in 2018 was

considerably lower than the ambitious budget

over 2018 of €22 million. The main causes were a

combination of too ambitious project planning and

delays in implementation at the end of 2018 leading

to postponement to 2019.

Continuity reserveThe positive result over 2018 has led to a further

strengthening of the continuity reserve up to €1.5

million per 31 December 2018. The continuity reserve

will assure continuation of operations in case of a

drastic reduction in donor funding or a major incident.

The level of €1.5 million per 31 December 2018 is

considered sufficient to serve its purpose for now.

SPARK principles and policies with regard to this

reserve are further explained in the financial report.

In 2019, these principles and policies about height

and type of reserves will be evaluated. This evaluation

will take into account SPARK’s growth, the possible

increased need for pre-financing (new) donor

contracts and a reassessment of the increasingly

stricter and more formal donor procedures that

increase the risk for a payback obligation for non-

eligible expenses.

Loan guarantee fundBesides regular programme activities, SPARK has

provided financial access (support) through loans

and/or guarantees instead of grants. Loans are

predominantly disbursed through financial institutions

in SPARK’s target countries. The funds that were

provided by donors for this purpose, and repaid

annual report 2018

amounts of these loans and/or guarantees, are

administered in the Loan guarantee fund which

totaled €1.1 million at the end of 2018. In 2019,

SPARK will reassess, in consultation with the original

donors, how to earmark and exploit this fund further in

the future.

Budget 2019 SummaryThe format of the budget has been revised in order

to create better management information about

which financial figures and positions influence the

actual result. The budget shows a growth ambition of

40% from the €17 million over 2018 to €24 million

over 2019. Due to budgeted investments in quality

improvements at different levels, the budgeted

balance of income and expenditure is €77,010

negative as compared to the realised €258,241

positive over 2018. This revised budget has been

approved in the Supervisory Board meeting of July

2019.

Statement of income and expenditures

Income from projects

Realised reimbursement of direct project expenses excl. staff costs & overhead 19,683,937

Realised reimbursement and profit charge on staff costs 3,296,786

Realised "overhead" charges 1,073,408

Write offs Write offs non reimbursable project expenses - 100,000

Subtotal net project income 23,954,131

Other income IBCM rent and training fees 10,000

Total income 23,964,131

Expenditures

Reimbursable project expenses excl. staff costs & overhead 19,683,937

All staff costs 3,250,000

Other organisational costs, non-reimbursable 1,067,204

Total expenditure 24,001,141

Balance before financial income and expenditure - 37,010

Financial income or expenditure, non-reimbursable - 40,000

Total statement of income and expenditure -77,010

Addition to/withdrawal from

operational result to continuity reserve - 77,010

Distribution of result - 77,010

Budget 2019 €

Finance

50 51

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annual report 2018

Nawar Rahmouni, Syrian student, hosting the Bridging the Gap conference in Beirut, Lebanon

55

annual report 2018

54

8 Financial StatementT 2018

Assets 31 December 2018 31 December 2017

Fixed Assets

Tangible fixed Assets 66.220 63.982

Financial fixed assets 685.894 859.780

923.762

Current Assets

Receivables & Accruals 6.120.074 2.850.413

Cash & cash equivalents 5.984.190 10.209.239

12.104.264 13.059.652

TOTAL 12.856.378 13.983.414

Reserves and liabilitiesReserves

continuity reserve 1.492.227 1.218.926

Funds

allocated funds 1.104.520 1.119.580

Current Liabilities

Payables & Accruals 10.259.630 11.644.908

TOTAL 12.856.378 13.983.414

Balance Sheet

31 December 2018 31 December 2017

��

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annual report 2018

Statement of income and expenditures

IncomeRealisation

2018€

Budget2018

€

Realisation2017

€

Income from companies 241.489 815.097 413.484

Income from government grants 13.588.676 17.574.963 11.681.059

Income from other non profit organisations

2.866.865 3.004.810 2.424.771

Income for services 373.238 247.180 439.748

Other income 20.759 - 37.838

Total Income 17.091.027 21.642.050 14.996.900

Expenditures

Spent on objectives

Higher Education 11.342.604 13.936.037 10.715.246

Private Sector Development 4.679.906 6.864.018 3.333.879

Subtotal 16.022.510 20.800.055 14.049.125

Cost of income generation 322.481 254.300 324.076

Management and Accounting 565.674 468.775 459.514

Total expenditures 16.910.665 21.523.130 14.832.715

Balance before financial income/expense

180.361 118.920 164.186

Balance of financial income and expenditure

-77.880 60.000 128.815

Balance of income and expenditure

258.241 58.920 35.371

Distribution of result

Addition to/withdrawal from:

Allocated loan guarantee funds -15.060 -79.973

Allocated fund IBCM -0 -89.781

Operational result availible for continuity reserve

273.301 205.125

258.241 35.371

Cashflow from operational activities2018 2017

€ €

Result 258.241 35.371

Depreciation fixed assets (incl. cars) 28.817 34.954

Gross cashflow from operation activities 287.058 70.325

Mutation in current assets -3.269.661 193.201

Mutation (decrease) in current liabilities -1.385.278 2.356.811

Net cashflow from operational activities (A) -4.367.881 2.620.337

Cashflow from investment activities

Investment in fixed assets -31.055 -33.032

Disposal of fixed assets - 3.337

Investment in financial fixed assets 173.886 125.863

Cashflow from investment activities (B) 142.831 96.168

Mutation in Cash and cash equivalents (A+B=C) -4.225.050 2.716.505

Cash and cash equivalents 1 January 10.209.239 7.492.734

Cash and cash equivalents 31 December 5.984.190 10.209.239

Mutation in Cash and cash equivalents -4.225.049 2.716.505

Cashflow Statement

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annual report 2018

Objectives Costs Fundraising Management & Accounting Total 2018 Budget 2018 Total 2017

Costs of implementation Higher EducationDevelopment

Private Sector Development

Grants and contributions 10.169.545 3.972.572 - - 14.142.116 16.866.088 12.361.573

Fundraising & Communications 228.368 228.368 254.300 247.625

Personnel Costs 963.091 580.727 77.101 463.425 2.084.344 3.522.213 1.975.540

Housing costs 49.204 29.669 3.032 18.224 100.129 399.754 108.718

Office and general costs 144.693 87.248 13.544 81.406 326.891 445.775 113.705

Depreciations 16.071 9.690 436 2.620 28.817 35.000 25.552

Total 11.342.604 4.679.906 322.481 565.674 16.910.665 21.523.130 14.832.715

% spent on objectives/total income taking loan guarantee fund deposits & repayments into account

93% 101%

Specification and allocation of costs according to category

An important cause of the deviation for grants and

contribution compared to the budget 2018 is the

underspending on LEAD IEO and ABIN. Unspent

budget on these programs can be used in 2019. Due

to this unspent budget spark was also not able to

spent the allocated budget on the personnel costs.

This has caused in underspending of around 1.5

million on the budgeted personnel costs.

Explanation distribution of expendituresSPARK has one office in Amsterdam (headquarter)

and several field offices in the countries where the

projects are executed. SPARK’s programmes can

be divided into two objectives: Higher Education

(development) (HE) and Private Sector

Development (PSD).

Under PSD SPARK stimulates entrepreneurship and

development in the private sector in post conflict

areas / fragile states by for instance organising

business plan. competitions trainings and sme

financing facilities for young (starting) entrepreneurs.

Coaching and other trainings aimed at partners for

local capacity building are other PSD activities. In

addition Policy Making activities are undertaken

to influence local / regional / national policy

makers to facilitate private sector development. In

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annual report 2018

all our programmes local & regional partners are

stimulated to work together as much as possible and

to contribute to our projects.

With the Higher Education SPARK wants to contribute

to improving the quality of education alongside

increasing young people’s employability. SPARK

believes that schools and universities should not

only produce valuable employees but produce

job creators and entrepreneurs as well. Through

education young and ambitious people from different

backgrounds are given the chance to create their

own opportunities. Especially through applied

technical education and associated internships

and traineeships with companies they can gain

knowledge and relevant experience. “ In SPARK we

are aware that any successful intervention will not

only support good quality educational services, but

will ensure the international “ recognition of these

qualifications and establishing required quality

assurance mechanisms. Moreover it will ensure that

the relevant groups that will operate these facilities

will be linked into international networks of higher

education.

Division of the expenditures relevant for SPARK

(HE, PSD, Costs obtaining governmental grants

and Management & Administration) takes place as

follows:

Expenses which can be qualified as programme

expenditures (for instance reimbursements

to partners, rent of lecture rooms & training

space, reimbursements to trainers, travel and

accommodation expenses of participants and

trainers, reading materials, partners activities etc.)

are directly allocated to the objective HE & PSD.

These expenditures are presented under “Grants and

Contributions”.

Operational and organisational costs of the field

offices (“Publicity and Communication”, “Personnel

costs”, “Housing costs”, “Office and general costs”

and “Depreciation”) are also directly allocated

to the objectives. If a field office has worked on

projects with different objectives the expenditures are

allocated towards the objectives HE and PSD based

on the time spent (hour registration) on different

programmes.

Operational and organisation costs of the

Amsterdam office are allocated to the objectives

using the time registration of all International (mostly

Amsterdam based) Management Administrative

& Support personnel. An exception to this are the

promotion expenses occurred in The Netherlands

and direct costs for obtaining grants and other

income. These are directly allocated towards the

objective “Costs Fundraising & Communications”.

Project management Finance and IT hours directly

registered on projects / programmes are allocated to

the objectives HE and PSD.

Indirect hours regarding Finance IT Organisation

and Personnel are allocated to Management &

Administration (=overhead).

(Indirect) Hours regarding Fundraising Governmental

grants are allocated to the objective “Costs

Fundraising & Communications”.

Specification and allocation of costs according to category

6362

annual report 2018

General The annual accounts 2018 have been drawn

up according to generally accepted accounting

principles in the Netherlands and RJ 650 for

Fundraising organisations. The accounts include the

financial statements of Stichting SPARK in Amsterdam,

The Netherlands, and the regional offices in Serbia,

Kosovo, Macedonia, Liberia, Palestine, Burundi,

Rwanda, South Sudan, Yemen, Turkey, Somalia, Iraq,

Lebanon, Tunisia and Jordan.

Principles of valuationAssets and liabilities are stated at face value

unless indicated otherwise. Transactions in foreign

currencies are recorded using the rate at the date of

the transaction. Assets and liabilities denominated in

foreign currency are converted at the exchange rate

at the year-end.

Fixed assetsThe tangible fixed assets are stated at purchase

value minus annual depreciations, calculated on the

basis of estimated useful economical lifetime. The

depreciation is a fixed percentage of the purchase

price:

Statement of Income and Expenditures. The loan

guarantee funds were originally financed by the

Dutch Ministry of Foreign Affairs through project

grants (MFS & BSCK). The ownership of the funds

has been formally transferred to SPARK during 2011.

SPARK pledged to keep using the funds for the same

purposes as the original objective. Therefore, the

funds are also presented as allocated reserve under

the Reserves & Funds. Future losses on loans and

costs of funds management will be deducted from

these funds through the Statement of Income and

Expenditures.

Cash & Cash equivalents All amounts presented under the Cash & cash

equivalents heading, are directly accessible. Foreign

currency accounts are valued at the EURO - foreign

currency exchange rate per 31 December 2018.

Reserves and FundsSPARK can freely access the amounts presented

under the Continuity reserve. Most of the allocated

loan guarantee funds are freely accessible because

the ownership of the funds is officially transferred to

SPARK. We have chosen to keep presenting them

as a fund, since we will continue to use them for the

same objective. Loan guarantee funds provided

to partners under the MFSII, ABC and Migration

Programmes are still owned by the donors. After the

project period has ended the donor will decide if

their ownership can be transferred to SPARK.

Liabilities - partner obligationsSPARK has signed several contracts with

partners, and herewith transferred certain project

responsibilities and funds to them. The project grants

presented under the income, as well as the expenses,

include an amount for obligations towards local

partners that SPARK has committed itself to transfer in

upcoming years. For contracts that will be continue in

the next year, the full obligation by contract signing

with parnter as project costs and if needed it will be

corrected at the end of the contract period.

Foundation of determining the resultThe result has been determined as follows: Grants

are recognised as income in the statement of income

and expenditure in proportions of the progress of

the project expenditure. Income and expenditure are

recorded in the period to which they relate.

Allocation of general organisational costs to the objectives Operational and organisation costs of the Amsterdam

office have been allocated to the objectives

using the time registration 2018 of all Amsterdam

personnel. For further clarification, please refer to

the explanation provided under specification and

allocation of costs according to category.

In 2018, loan guarantee and credit fund costs

have been presented as part of the direct costs for

Financial fixed assetsSPARK has signed 16 contracts with local partners to

manage loan guarantee funds which benefit the start

ups established under the Private Sector development

projects. The contributions to these funds in the total

period 2007-2018 can be found in the explanatory

notes to the balance sheet. The participation is stated

at its actual value at year end, taking into account

losses on loans and received interest. Costs of fund

management are presented as expenditures in the

Accounting principles

NL Rwanda Burundi Liberia Palestine South Sudan Lebanon Jordan

furniture 25% 20% 20% 20% 10% 25% - -

computer hardware 33% 50% 20% 25% 20% 25% 20% -

cars 25% 25% 20% 25% 25% 25% n.a 20%

Kosovo Serbia Yemen Gaziantep Somalia Iraq Tunisia

furniture 20% 20% 25% 25% 33% 46-48% 20%

computer hardware 20% 20% 33% 25% 33% 46% 33%

cars 25% n.a. n.a. n.a. n.a. n.a. n.a.

The costs of fuel and usage of the cars are allocated to the projects based on a kilometer registration.

6564

annual report 2018

the Spark mission in the Statement of Income and

Expenditures.

Income from own fundraising - Contributions in kindOther in kind contributions

The municipality of Mitrovica provided SPARK with

free usage of land for the purpose of establishing

the International Business College Mitrovica (IBCM).

SPARK / IBCM has the right of usage for 10 years,

until 2019. All (other) in kind contributions are

stated at their fair value, however, in 2018 no such

contributions were received. The contributions are

presented under Income from own fundraising and

under the particular cost sort / activity they relate to

in the Statement of Income in Expenditures.

Assets 31 December 2018 31 December 2017

Tangible fixed assets € €

Renovations - 112

Furniture 10.998 14.083

Computer hardware 35.195 22.804

Cars 20.027 26.983

66.220 63.982

Fixed assets Total 2018 Renovations Furniture Computer hardware Cars

Bookvalue previous year € € € € €

Purchase value 451.346 36.072 77.043 211.900 126.330

Accumulated depreciation -387.363 -35.960 -62.959 -189.097 -99.347

Book value 01 January 63.982 112 14.083 22.804 26.983

MutationsPurchases 31.055 2.032 29.023

Disposals -

Depreciation -28.817 -112 -5.118 -16.631 -6.956

Total mutations 2.238 -112 -3.085 12.391 -6.956

Bookvalue year endPurchase value 482.400 36.072 79.075 240.923 126.330

Accumulated depreciation -416.180 -36.073 -68.077 -205.728 -106.303

Bookvalue 31 December 2018 66.220 0 10.998 35.195 20.027

Fixed assets 31 December 2018 31 December 2017

€ €

Fixed assets used for operations (renovations, furniture & hardware)

46.193 36.999

Fixed assets directly allocated to the objectives (cars)

20.027 26.983

Total 66.220 63.982

Explanatory notes Balance Sheet

Accounting principles

6766

annual report 2018

Financial Fixed assets 2018 2017

Participation loan guarantee funds € €

Balance 01 January 708.402 985.643

Mutation -173.886 -277.241

Balance 31 december 534.516 708.402

Specification mutation New loan guarantee contracts and new loans

-

Defaults -23.246

Reimbursement and closed contract with banks / participants

-158.826

Interest, provisions and exchange rate differences

8.186

Total mutation -173.886

Loans (IBCM) 151.378 151.378

Total Financial Fixed assets 685.894 859.780

The financial fixed assets are directly allocated to the objective Private Sector Development.For the explanation of the usage of these funds, please see the description of the allocated revolving funds, under the Liabilities.

Loan to IBCMThe loan of 151.378 is agreed between IBCM and Spark on 12.09.2018. As agreed the loan will be repaid over period of 4 years.

Current assets 31 December 2018 31 December 2017

€ €

Prepaid Grants for donors 5.569.209 2.178.340

Accounts receivables and prepaid expenses

550.865 672.073

6.120.074 2.850.413

Prepaid Grants for donors 31 December 2018 31 December 2017

€ €

Project MADAD EU 4.184.627 95.737

Project Al Fakhoora 696.495 875.973

Project ABC 211.758 1.036.660

Project THSN Global 138.078 -

Project IBCM - EU 85.299 -

Project ISDB+NUR, IsDB 84.015 -

Project ISDB+NUR, Al Nouri 45.847 -

Project KRITERION 38.416 -

Project BYB NLMFA 34.351 -

Project Diploma Acceptance 2 EU 16.855 16.855

Project KEEN - EU 16.342 40.854

Project TBB&TBBX 7.211 33.602

Project UNDP Burundi 2018 3.971 -

Project CDAIS 3.937 -

Project BCP 2.006 135

Project Branson - 25.433

Project Pico Cap - 4.222

Project BiB - 9.201

Project IBCM - SDC - 39.667

5.569.209 2.178.340


6968

annual report 2018

Accounts receivables and prepaid expenses 31 December 2018 31 December 2017

€ €

Prepaid expenses 25.779 28.170

Receivables from Partners 60.602 33.660

Other receivables 36.601 348.452

Other receivables - Service contracts:

AfDB 196.487 128.439

BTC OPT 113.936 23.246

BDO SMEF Somalia (service contract) 87.992 68.889

SANAD 15.869

Research project MMP 13.599 14.265

EBRD (Tur) - 26.951

550.865 672.073

Reserve uncollectable receivables (tuition)

- -

550.865 672.073

Cash & Cash equivalents 31 December 2018 31 December 2017

€ €

Cash Amsterdam 1.056 475

Current & savings accounts The Netherlands

3.902.176 8.732.706

Cash abroad offices 21.925 16.094

Transfers underway -11.928 -

Current accounts abroad offices

Kosovo 343.736 86.109

Serbia 14.047 46.943

Macedonia 1.849 1.848

Rwanda 311.018 404.231

Burundi 36.544 95.531

Liberia 8.838 35.625

Occupied Palestinian Territories 11.022 48.395

Somalia 46 370

Turkey 593.183 67.841

South Sudan 4.803 3.817

Yemen 35 20

Lebanon 160.977 66.051

Iraq 321.556 381

Jordan 263.305 602.802

5.984.190 10.209.239

All liquidities are directly accessible.

Reserves and liabilitiies 31 December 2018 31 December 2017

Specification of General reserves € €

Continuity reserve 1.492.227 1.218.926

1.492.227 1.218.926

Continuity Reserve

€

Balance 01 January 2018 1.218.926

Mutation 2018 273.301

Balance 31 December 2018 1.492.227


7170

annual report 2018

Continuity reserveThe general continuity reserve covers all remaining

risks that are not addressed in any other allocated

reserve. The general continuity reserve should for

example, compensate unforeseen, sudden and

temprary stagnation of income or unforeseen

excessive expenses. The Excutive Board and the

Supervisory Board have set a general guidelines to

determine the maximum requirement of continuity

reserve.

When determining the maximum of the reserve,

SPARK takes the “Richtlijn Goede Doelen Nederland

“Financial management for Charities” into account

(maximum 150% of the annual costs of the working

organisation).

The main guidelines to determine the height of the

reserves are as follows:

• SPARK does not aim for large savings because

the focus should be on our final beneficiaries;

• SPARK field offices are not part of the annual

organisational costs, because they are only

relevant for as long as there are projects;

• SPARK focuses on acquisition of new projects

rather than building reserves

The Continuity Reserve increased to € 1,5 million on

31 December 2018. The annual costs of the executive

organisation can be defined as the Personnel costs

for Amsterdam and Belgrade office staff, field office

coordinating staffs, housing costs and office and

general costs (see Explanatory notes to the Statement

of Income and Expenditure for the amounts) and are

€ 2,5 million as per level of 2018. The Continuity

Reserve on 31 December 2018 is therefore 60% of

the annual coats of the executive organisation and

are well below the maximum of 150% explained

above.

Specification of allocated funds 31 December 2018 31 December 2017

€ €

Allocated reserve for IBCM 0 0

Revolving Loan guarantee fund business start-ups 1.104.520 1.119.580

1.104.520 1.119.580

Allocated fund for IBCM

Balance 01 January 2018 0

Addition from received tuition (NLMFA & students) funds 39.977

Addition from received miscellaneous income (5.502)

Extraction to cover part of costs for 2018 & bad debts (34.475)

Balance 31 December 2018 0

The IBCM Fund was to be used to ascertain future sustainability of IBCM after donor relations with NLMFA

would have ended. The aim was to use it for any (future) IBCM project costs. This project is ended by June

2018.

Revolving Loan guarantee fund Business Start-Ups

Balance 01 January 2018 1.119.580

Mutation -15.060

Balance 31 December 2018 1.104.520

SPARK has been contracting local partners to

manage loan guarantee funds facilitating access to

finance for starting and growing businesses. This is

part of SPARK's Private Sector development projects.

Few direct loans were provided to businesses in

Afghanistan, Kosovo and Liberia. However, most

of the funds are cash collaterals deposited at local

micro-finance institutions or banks for a fixed period.

Common practice in these facilities is that MFIs/

banks disburse and manage loans from their own

funds and the deposit minus administrative costs

and defaults, plus gained interest on the deposit (or

from the entrepreneurs) is returned to SPARK after a

certain period. The fund is credited for these returns

that stay earmarked in this fund for new, future

investments.


7372

annual report 2018

Total loan guarantee fund mutation since 2007 can be summarized as follows:

Deposits into the funds: 2.099.181

Withheld management costs for banks: -40.734

Received interest added: 153.942

Exchange rate differences / currency revaluations: 12.935

Deducted bankrupt / delayed loans: -805.890

Loan amounts not used and returned (2016, 2017) -144.478

Funds transferred to external parties -170.435

1.104.520

The revolving loan guarantee funds are €570,101 higher than the counterpart financial fixed assets on the

balance sheet. In the end of 2018 the difference at year’s end was €411,273. The difference is the result of

an amount of €158,826 received back and available for new loans. Since the start of the fund an amount of

€2,249,823 has been disbursed to entrepreneurs. Of this amount, €2.026,952 has been paid back at the end

of 2018.The entrepreneurs pay interest rates ranging from 5% declining to 15% nominal on unpaid principal.

The Revolving Funds are directly allocated to the objective Private Sector Development.

Current liabilities - Payables & Accruals 31 December 2018 31 December 2017

€ €

Grants received in advance 8.056.456 9.779.979

Other service contracts - received in advance 3.000

Partner obligations and payables 1.297.237 992.400

Shortterm debts & accruals 902.937 872.529

10.259.630 11.644.908

Grants received in advance 31 December 2018 31 December 2017

€ €

Project IEO - NLMFA 2.864.454 3.166.249

Project LEAD - NLMFA 1.502.843 3.317.818

Project MTK 1.048.468 -

Project Access to Higher Education - NLMFA 915.912 1.593.108

Project YWE - NLMFA 401.122 304.022

Postcode Loterij (NPL) 400.524 -

Project ABIN - NLMFA 389.992 5.322

Project IPoVaF, AFR 225.738 377.592

Project EULAP 58.165 -

Project EME - EU 51.847 160.366

Project HSN - Generali 43.494 43.494

Project THSN France - Generali 34.006 15.667

Project THSN Germany - Generali 30.992 42.492

Project DTT - NLMFA 24.878 181.777

Project Asfari Foundation 20.380 20.380

Project YEP NWP 19.387 -

Project UNDP 2018-2019 14.850 -

Project EXXON - NOCAL 9.404 22.579

Project Migration - NLMFA - 31.874

Project BYB - NLMFA - 243.013

Project IBCMEU - EU - 151.062

Project THSN Global - Generali - 76.078

Project ReCoded - 10.700

Project UNDP Burundi - 16.384

8.056.456 9.779.979


7574

annual report 2018

Partner obligations and payables 31 December 2018 31 December 2017

€ €

Programme PCL 345,117 -

Programme IEO 333,655 185,590

Programme LEAD 164,788 80,035

Programme YWE 150,972 -

Programme KRT 137,726 -

Programme EMEN-UP 111,760 2,828

Programme Al Fakhoora 29,426 627,930

Programme CSP 10,849 10,849

Programme HES 6,430 -

Programme AHE 3,687 85,168

Programme MFS II 2,828 -

1,297,237 992,400

Short term debts & accruals 31 December 2018 31 December 2017

€ €

Accruals 713.431 733.219

Creditors 109.828 15.741

Income tax, social security, pensions, severance 27.840 54.520

Vacation days & allowance 47.654 65.294

Prepaid tuition from IBCM students 1.313 2.667

Other short term debts 2.872 1.088

902.937 872.529

The total estimated amount of outstanding holidays in 2018 is € 21,100 including field offices.

Name Donor Period project grant

Improving socio-economic position of youth in Libya, Somalia, Tunisia (LEAD)

NLMFA 01/01/2016-31/12/2019 € 3.507.922

Improving Employment Opportunities in Jordan (IEO) NLMFA 01/12/2016-31/12/2019 € 5.014.299

Access to Higher Education for Syrian refugees and IDPs (AHE) NLMFA 01/01/2017-31/12/2019 € 1.797.394

Youth and Women Agribusiness Entrepreneurship Programme in South Sudan (YWE)

NLMFA 01/11/2017-31/03/2019 € 447.997

Burundi Agribusiness Incubation Network (ABIN) NLMFA 20/11/2014-30/09/2019 € 571.056

Access to HE for Syrian Refugees and IDPs (MADAD) EU 01/01/2017-15/12/2019 € 4.379.144

Network for Migrant Entrepreneurs to Scale Up and Grow (EMEN-UP) EU 01/10/2017-01/10/2020 € 196.842

EU Liberia Agriculture program (EULAP) EU 15/01/2018-31/12/2023 € 1.753.140

Social enterprise art house cinema: a hub and platform for promoting human rights, social development, culture and cultural heritage in Liberia (KRT)

EU 01/01/2018-01/07/2019 € 41.439

Off Balance Sheet CommitmentsThe following programmes / projects relate to periods exceeding the year 2018:


7776

annual report 2018


Capacity Development for Agricultural Innovation Systems (CDAIS) University of Greenwich, Natural Resources Institute

01/12/2017-30/03/2019 € 120.408

Food Security through Agribusiness Project South Sudan (FSA) Cordaid 16/08/2018-31/07/2023 € 2.289.565

TA Consulting Services for the Establishment and Management of a Somali Small and Medium Enterprise Facility (SMEF)- (BDO)

World Bank 30/07/2016-30/07/2019 € 288.328

Start-up Bootcamp and Incubation for Young Entrepreneurs Citybank Europe plc, Luxembourg Branch

06/08/2018-30/04/2019 € 8.122

Rental obligations

As of 11 May 2012 SPARK is located in the HNK building (formerly known as Y-tech building) in Amsterdam

The total expenses per year are € 36.612. The contract will end on 31 March 2020.

SPARK’s field offices rental obligations:

Loan guarantee Funds / Loan obligations

All signed contracts have been paid out in full in 2018.


Higher Education for Syrians under Temporary Protection and disadvantaged host communities in Turkey (MTK)

EU 29/12/2017-29/12/2019 € 3.792.562

Dynamic Futures Programme- Syrian Refugees and Palestinian Expansion (AF)

Education above all foundation all

30/04/2016-29/04/2022 € 6.713.699

Increasing access to finance services to enhance productivity, income and job opportunities for Irish Potatoes smallholder farmers in Rwanda (IPoVaF)

AFR 01/01/2018-31/03/2019 € 357.935

Human Safety Net for Refugee Start Up (THSN, THSN France&Germany) Generali 01/05/2017-01/01/2020 € 153.083

Youth Entrepreneurship and Employment Project (YEEP/AfDB) AfDB 10/05/2017-31/12/2019 € 103.234

Kosovo Education for Employment Network (subcontracted by KEC) - (KEEN)

KEC/EU 16/01/2016-27/12/2019 € 20.121

Improving Acess to Education for Syrian Refugee and IDPs in Syria Region through Providing Vocational Education for Employment in-order-to Empower a workforce for the Reconstrruction of Syria (ISDB+NUR, Al Nuri)

Al Nouri Charity 16/08/2018-15/08/2023 € 817.484

Improving Acess to Education for Syrian Refugee and IDPs in Syria Region through Providing Vocational Education for Employment in-order-to Empower a workforce for the Reconstrruction of Syria (ISDB+NUR, IsDB)

ISD Bank 16/08/2018-15/08/2024 € 2.218.275

Nationale Postcode Loterij NPL NV 01/03/2018-01/03/2019 € 400.524

Peacebuilding for sustainable reintegration for peace in Burundi (UNDP) UNDP 30/07/2018-30/07/2019 € 40.598

SPARK’s field offices rental obligations contract period yearly obligation

Burundi up to 31/12/2019 € 7.904

Iraq up to 19/10/2019 € 7.614

Rwanda up to 31/12/2019 € 15.807

Serbia up to 14/12/2019 € 7.064

Somalia up to 30/04/2019 € 5.269

Turkey up to 31/07/2019 € 14.700

South Sudan up to 31/12/2019 € 13.173

Liberia up to 31/12/2022 € 15.807

Of Balance Sheet Commitments

7978

annual report 2018

Income Realisation2018

Realisation2017

€ €

Income from companiesGenerali (HSN, THSN, THSN Global, THSN France, THSN Germany) 228.314 342.004

EXXON BiaB, Nocal 13.175 71.480

241.489 413.484

Income from government grantsGrants EU - Diploma recognition, KEEN, MADAD, IBCMEU, EME, EULAP, KRITERION

5.965.483 5.451.282

Grants NLMFA - ABC, MIGR, CSP, CEEUS, SYRIN, HES, ABIN, AHE, LEAD, IEO, DTT, BYB, YWE

6.012.133 5.895.731

Grant Postcode Loterij (NPL) (activity grant) 599.476 -

Grant IPoVaF, AFR 501.907 -

Grants UNDP - Entreprise development Burundi 315.904 159.687

Grant ISBD+NUR, IsDB&Al Nouri 129.862 -

Grants US - TBB, TBBX 63.911 174.360

13.588.676 11.681.059

Income from other non profit organisationsAl Fakhoora, Education Above All 2.720.271 2.122.176

CDAIS, NRI 136.429 -

YEP, NWP 7.613 0

BCP, Bpeace 2.551 135

Grant King Badouin Foundation - scholarship database - 6.925

Humanity United (Pico Cap) - 24.542

Asfari - 98.078

WCH - 91.038

Grants IFC (WB) - 4.227

ReCoded, New Your University - 77.651

2.866.865 2.424.771

Explanatory notes Statement of Income and Expenditure

Income for the delivery of products and/or the provision of services

BDO SMEF Somalia (service contract) 161.926 126.402

AfDB (service contract) 98.129 128.439

BTC OPT (service contract) 90.690 143.691

SANAD (service contract) 15.869 -

EBRDME (service contract) 4.113 -

EBRD (Tur) (service contract) 2.512 26.951

Research project MMP 0 14.265

373.238 439.748

Other Income€ €

IBCM other income (rent & training fees) 20.759 37.838

Total Income 17.091.027 14.996.900

Expenditures

€ €

Grants and contributions 14.142.116 12.361.573

Direct costs fundraising 190.793 195.830

Publicity and Communication 37.575 51.795

Personnel Costs 2.084.344 1.975.540

Housing costs 100.129 108.718

Office- and General costs 326.891 113.705

Depreciation 28.817 25.552

TOTAL expenditures 16.910.665 14.832.715

Income Realisation2018

Realisation2017

€ €

8180

annual report 2018

Grants and contributions 2018 2017

Private Sector development programs € €

Remunerations 3rd parties (partners, experts, trainers) 1.397.882 654.520

Project travel and accommodation costs SPARK & 3rd parties 309.632 103.377

Capacity building through partners 1.733.085 1.084.358

Direct poverty allevation 44.612 267.586

Policy making / Youth participation / Government legitimacy 68.695 100.668

Monitoring & evaluation costs 440.206 361.741

Loan Guarantee and Credit Fund costs -21.540 126.985

Own contributions students / participants / trainees 0 -150

Subtotal Private Sector Development 3.972.572 2.699.085

Higher Education programmes

Establishing International business College Mitrovica 0 3.475

Higher Education project costs 10.209.522 9.751.613

Own contributions students / participants -39.977 -92.600

Provision for uncollectable tuition students 0 0

Subtotal Higher Education 10.169.545 9.662.488

Total grants and contributions 14.142.116 12.361.573

Direct costs fundraising 2018 2017

€ €

Feasibility studies and project acquisition 190.793 195.830

190.793 195.830

Publicity and Communication 2018 2017

€ €

SPARK general - promotion and advertising 37.575 51.795

37.575 51.795

Personnel Costs 2018 2017

Amsterdam € €

Gross salaries including holiday allowances 971.412 713.766

Social security premiums & Pensions 143.102 116.581

Other personnel costs 66.106 159.786

Staff training (including field office staff) 2.451 8.120

Field offices

Field office coordinating personnel 901.274 866.682

2.084.344 1.975.540

Housing costs 2018 2017

€ €

Rent and utilities - Amsterdam office 46.523 42.092

Rent and utilities - field offices 53.607 66.627

100.129 108.718


8382

annual report 2018

Office and general costs 2018 2017

Amsterdam € €

Office supplies, telecommunication & postage, other office costs 14.461 19.983

IT infrastructure services - maintenance 5.492 3.283

General evaluation and reports (not under direct Programme costs) 2.541 3.812

Organisational fees and memberships 6.416 7.975

Administration and auditing 146.910 48.533

Tax & legal advice 31.524 15.288

Quality assurance 6.442 4.122

Insurances 23.285 13.278

Representation 1.366 586

Contingencies -105.149- -101.903

MASP Implementation 74.534 -

Field offices / projects

Office supplies, telecommunication & postage, other office costs 32.056 42.110

IT infrastructure services - maintenance 617 2.716

Project evaluation and reports - 136

Organisational fees and memberships 823 1.283

Administration and auditing 9.591 3.327

Tax & legal advice 86.332 61.366

Insurances 5.124 888

Representation 879 1.546

Other general expenditures (car costs) (4.238) 5.591

Contingencies (15.124) (20.214)

MASP Implementation 3.011 -

326.891 113.705

Depreciation 2018 2017

Amsterdam € €

Depreciation fixed assets 6.688 7.179

Field offices / projects

Depreciation fixed assets 22.129 18.373

28.817 25.552

Total expenditures 16.910.665 14.832.715

Balance before financial income/expense 180.361 164.186

Balance of financial income and expenditure -77.880 128.815

Balance of income and expenditure 258.241 35.371

Financial ratios 2018 2017

Total Spent on objectives 95% 95%

Total cost of income generation 2% 2%

Total management & accounting 3% 3%

Total expenditures 100% 100%


8584

annual report 2018

Amounts in € Yannick du Pont Michel Richter

Position Director Co-Director

Periode 01/01-31/12 01/01-31/12

Employment agreement Permanent Permanent

Hours/week 40 32

Part time percentage 100% 80%

Former senior executive? no no

Fictitious employment? no no

Remuneration

Remuneration including taxable allowances 93.947 66.394

Remuneration payable in future 2.845 2.595

subtotal 96.792 68.989

Applicable maximum remuneration 174.000 139.200

Excess na na

Total remuneration 96.792 68.989

Reason why excess is allowable na na

Comparative information 2017

Periode 01/01-31/12 01/01-31/12

Part time percentage in 2017 1 0,8

Total remuneration in 2017 95.098 68.063

Amounts in € E.P. Offerhaus H.R.C. Huijgens T.T. Schrofer

Position Chair Member Member

F.�Knaapen�

Periode 01/01/-31/12 01/01/-31/12 01/01/-31/12 01/01/-31/12

Remuneration

Remuneration

Applicable maximum remuneration 26.100 17.400 17.400 17.400

Excess na na na na

Total remuneration � - - -

Reason why excess is allowable na na na na

Comparative information 2017

Periode 01/01-31/12 01/01-31/12 01/09/-31/12 01/09/-31/12

Remuneration including taxable allowances - -

Remuneration payable in future - -

Total remuneration in 2017 - -

Remuneration Executive board SPARK

Member

-

-

-

-

-

-

- - - -

8786

annual report 2018

Income 2018

Project (cash) grants from donors € %

Govt Grant ABC - NLMFA 163.427 1%

Govt Grant ABIN - NLMFA 373.440 2%

Govt Grant AHS - NLMFA 687.895 4%

Govt Grant DTT - NLMFA 156.912 1%

Govt Grant YWE - NLMFA 472.692 3%

Govt Grant BYB - NLMFA 277.383 2%

Govt Grant IEO - NLMFA 2.064.578 12%

Govt Grant LEAD - NLMFA 1.815.806 11%

Govt Postcode Loterij (active project) 599.476 4%

Govt Grant MTK - EU 1.207.438 7%

Govt Grant KEEN - EU 12.496 0%

Govt Grant MAD - EU 4.088.890 24%

Govt Grant IBCMEU, EU 236.362 1%

Govt Grant ISDB+NUR, Al Nouri 45.847 0%

Govt Grant ISDB+NUR, IsDB 84.015 0%

Govt Grant KRT - EU 154.561 1%

Govt Grant EULAP - EU 157.210 1%

Govt Grant EMEN -UP 108.527 1%

Govt Grant Burundi Rural Entrepreneurship - UNDP 315.904 2%

Govt Grant IPoVaF, AFR 501.907 3%

Govt Grant TBB 63.911 0%

Comp Grant THSN Generali 228.314 1%

Comp Grant EXXON 13.175 0%

Ngo's Grant Al Fakhoora 2.720.271 16%

Ngo's Grant CDAIS, NRI 136.429 1%

Ngo's Grant YEP, NWP 7.613 0%

Ngo's BCP 2.551 0%

Subtotal 16.697.029 98%

Other Income 2018

€ %

Subtotal 16.697.029 98%

Other Other income IBCM (rent & trainings) 20.759 0%

Other Other miscellaneous income SPARK 373.238 2%

393.997 2%

17.091.027 100%

Income & Percentages per donor / origin 2018

NLMFA 6.012.133 35%

Postcode Loterij 599.476 4%

EU 5.965.483 35%

UNDP 315.904 2%

Other cash grants & income 4.198.031 25%

17.091.027 100%

2018 Calculation (as determined by donor) on accrual basis 2018

Total 2018 grants NLMFA 6.012.133 35%

Non - NLMFA grants & contributions 2018 SPARK Total incl in kind 11.078.894 65%

Total income SPARK 2018 17.091.027 100%

Percentages: per programme & donor and efficiency indicators

8988

annual report 2018

Syrian students learning in KR-I

9190

annual report 2018

Edo Offerhaus,

Chairman, SB

Hans Huygens

Secretary, SB

Tamar Schrofer

General board member, SB

Yannick du Pont

Director of Acquisition and External Communications

Michel Richter

Director of Programmes

Addie van Dalen

Director of Finance

Esther Bosgra

Director of Operations

Signatories of the Annual Report 2018Signed in Amsterdam on 26th September, 2019

Sarah Page

CorrespondentiePostbus 3273360 AHSliedrecht

0172 - 750 [email protected] www.withaccountants.nl@withaccountants

IBAN NL71 INGB 0667 8301 62 KvK 28112484

ACCOUNTANTS IN NON-PROFIT

Stichting SPARK Van Diemenstraat 70 1013 CN AMSTERDAM

INDEPENDENT AUDITOR’S REPORT

To: the Board of Directors and the Supervisory Board of Stichting spark

Report on the audit of the financial statements 2018 included in the annual report

Our opinion We have audited the accompanying financial statements 2018 (page 54-90) of Stichting SPARK, based in Amsterdam.

In our opinion the accompanying financial statements give a true and fair view of the financial position of Stichting SPARK as at 31 December 2018 and of its result over the period 1 January 2018 up to 31 December 2018 in accordance with the Guideline for annual reporting 650 “Fundraising Organizations” of the Dutch Accounting Standards Board.

The financial statements comprise:

1. the balance sheet as at 31 December 2018 (with a balance sheet total of € 12,856,378);2. the statement of income and expenditure for the period 1 January 2018 to 31 December 2018 (with a total positive

result of € 258,241); and3. the notes comprising a summary of the accounting policies and other explanatory information.

Basis for our opinion

We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities under those standards are further described in the ‘Our responsibilities for the audit of the accompanying financial statements’ section of our report.

We are independent of Stichting SPARK in accordance with the ‘Verordering inzake de onafhankelijkheid van accountants bij assurance-opdrachten’ (ViO, Code of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant independence regulations in the Netherlands. Furthermore, we have complied with the Verordening Gedrags- en Beroepsregels Accountants (VGBA, Dutch Code of Ethics).

We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Report on the other information included in the annual report

In addition to the financial statements and our auditor’s report thereon, the annual report contains other information that consists of:

� the report of the Board of Directors (page 4-53); � list of abbreviations (page 94); � contact (page 96)

Based on the following procedures performed, we conclude that the other information is consistent with the financial statements, does not contain material misstatements and that all information is included which is requested by the Guideline for annual reporting 650 “Fundraising Organizations”. We have read the other information. Based on our knowledge and understanding obtained through our audit of the financial statements or otherwise, we have considered whether the other information contains material misstatements.


By performing these procedures, we comply with the requirements of the Dutch Standard 720. The scope of the procedures performed is substantially less than the scope of those performed in our audit of the financial statements. The Board of Directors is responsible for the preparation of the report of the Board of Directors and other information in accordance with the Guideline for annual reporting 650 “Fundraising Organizations” of the Dutch Accounting Standards Board. Description of responsibilities regarding the financial statements Responsibilities of the Board of Directors and the Supervisory Board for the financial statements The Board of Directors is responsible for the preparation and fair presentation of the financial statements in accordance with the Guideline for annual reporting 650 ‘’Fundraising Organizations’’ of the Dutch Accounting Standards Board. Furthermore, the Board of Directors is responsible for such internal control as management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. As part of the preparation of the financial statements, the Board of Directors is responsible for assessing the company’s ability to continue as a going concern. Based on the financial reporting framework mentioned, management should prepare the financial statements using the going concern basis of accounting unless management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. The Board of Directors should disclose events and circumstances that may cast significant doubt on the company’s ability to continue as a going concern in the company financial statements. Supervisory Board is responsible for overseeing the company’s financial reporting process. Our responsibilities for the audit of the financial statements Our objective is to plan and perform the audit assignment in a manner that allows us to obtain sufficient and appropriate audit evidence for our opinion. Our audit has been performed with a high, but not absolute, level of assurance, which means we may not detect all material errors and fraud during our audit. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, the could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The materiality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of identifies misstatements on our opinion. Was signed in Amersfoort, 26 September 2019. WITh accountants B.V. Drs. J. Snoei RA

Enclosure.


Enclosure to our auditor’s report by the accompanying financial statements 2018 of Stichting SPARK, based in Amsterdam We have exercised professional judgement and have maintained professional skepticism throughout the audit, in accordance with Dutch Standards on Auditing, ethical requirements and independence requirements. Our audit included e.g.: � identifying and assessing the risks of material misstatement of the company financial statements, whether due to

fraud or error, designing and performing audit procedures responsive to those risks, and obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;

� obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control;

� evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management;

� concluding on the appropriateness of management’s use of the going concern basis of accounting, and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the company financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause a company to cease to continue as a going concern;

� evaluating the overall presentation, structure and content of the company financial statements, including the disclosures; and

� evaluating whether the company financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Board of Directors and the Supervisory Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant findings in internal control that we identify during our audit.

9594

annual report 2018

ABC Agri Business Creation

ABIN Agri Business Incubation

AF Al Fakhoora

AfDB African Development Bank

AFR Access to Finance Rwanda

AsfariTrainings for young Syrian and Turkish

entrepreneurs

AUB American University of Beirut

BoD Board of Directors

BYB Boosting Your Beliefs

CDAIS Capacity Development for Agricultural Innovation Systems

CSP Cooperative Support programme

CoC Chamber of Commerce

DTT Deradicalisation Training Teachers

EBDA Entrepreneurship and Business Development Activities

EBRD European Bank of Reconstruction and Development

EMEN-UP

Network for Migrant Entrepreneurs to Scale Up and Grow

EU European Union

EU MADAD

EU Regional Trust Fund in Response to the Syrian crisis

EULAP EU Liberia Agriculture Programme

FCAS Fragile and Conflict Affected States

HE Higher Education

HES Higher Education Services

HQ Head Quarters

IACE Institut Arabe des Chefs d'Entreprises

IBCM International Business College Mitrovica

IEO Improving Employment Opportunities

INGO International Non-Governmental Organisation

IPOVAF Irish Potato Value Chain Financing

List of Abbreviations

IsDB Islamic Development Bank

KEEN Kosovo Education for Employment Network

KR-I Kurdistan Region of Iraq

LEAD Local Employment in Africa for Development

MFI Micro-Finance Institution

MSME Micro, Small and Medium Enterprises

NGO Non-Governmental Organisation

NLMFA Netherlands Ministry of Foreign Affairs

PCL Dutch Nationale Postcode Loterij

PSD Private Sector Development

MASP Multi Annual Strategic Plan

MENA Middle East and North Africa

SANAD Start-up Bootcamp and Incubation for Young Entrepreneurs

SB Supervisory Board

SSADP II South Sudan Agribusiness Development Project II

SME Small and Medium Enterprises

SIG Syrian Interim Government

TAMSS Tunisian Association for Management and Social Stability

TBB Talent Beyond Boundaries

THSN The Human Safety Net

TVET Technical and Vocational Education and Training

YEEP Youth Entrepreneurship and Employment Project

YWAE Youth and Women Agribusiness Entrepreneurship

9796

annual report 2018

ContactFollow SPARK on:

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Newsletter Subscribe to our newsletter via

www.spark-online.org

General contact Stichting SPARK

Van Diemenstraat 70

1013 CN Amsterdam

Email [email protected]

Phone +31 (0)20 753 0311

Website www.spark-online.org

Bank account information

Account Holder Stichting Spark

Account Number 655131957

IBAN NL62 INGB 0655 1319 57

BIC INGBNL2A

Place Amsterdam, the Netherlands

The texts, numbers and design of this Annual Report are checked

by the staff, Board of Directors and the Supervisory Board of

SPARK. Should you have questions or come across an error,

please contact us at [email protected]

https://www.facebook.com/SPARKignites

https://www.linkedin.com/in/sparkorg/

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http://spark-online.us4.list-manage.com/subscribe/post?u=540e05139853cefb3f4984cc7&id=6ae9e34caa

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